BRICS will top economic leagues- CEBR
December 27, 2013, 5:35 am

China will overtake the United States in 2028 to become the world’s largest economy, according to the new report by CEBR [Getty Images]

China, alongwith its BRICS partners, Brazil, India and Russia are going to continue to outperform many traditionally stronger economies, according to a study released on Thursday.

China will overtake the United States in 2028 to become the world’s largest economy, according to the new report by CEBR.

The London-based Center for Economics and Business Research (CEBR) said in its annual report 2013 that China’s gross domestic product (GDP) in US dollars would overtake the United States in 2028.

“This is later than some analysts have suggested and reflects the continuing performance of the US as the West’s strongest economy and the slowing down of the Chinese economy,” the report said.

Based on CEBR’s forecasts, India will overtake Japan in 2028 to become the world’s third largest economy.

It said: “Japan is likely to follow a weak currency policy for the foreseeable future which means that its GDP in dollar terms gets overtaken by India earlier than we had previously expected.”

Brazil will hold the 5th place while Russia will also overtake Italy to become the 8th biggest economy, according to the report.

Brazil overtook the UK in 2011 to become the world’s 6th largest economy. But CEBR said that the country had since fallen back but would overtake both the UK and Germany to become the world’s fifth largest economy in 2023.

“In 2014, while the Football World Cup is held in Brazil, it still looks likely that Britain will have a larger economy than Brazil,” it said.

“By 2023 India and Brazil are on the march. India is up to 4th, Brazil to 5th.” says the report.

The annual report issued by the CEBR, a leading economic consultancy in Britain, covers the 30 largest economies in the world.

57 founding members, many of them prominent US allies, will sign into creation the China-led Asian Infrastructure Investment Bank on Monday, the first major global financial instrument independent from the Bretton Woods system.

Representatives of the countries will meet in Beijing on Monday to sign an agreement of the bank, the Chinese Foreign Ministry said on Thursday. All the five BRICS countries are also joining the new infrastructure investment bank.

The agreement on the $100 billion AIIB will then have to be ratified by the parliaments of the founding members, Chinese Foreign Ministry spokesman Lu Kang said at a daily press briefing in Beijing.

The AIIB is also the first major multilateral development bank in a generation that provides an avenue for China to strengthen its presence in the world’s fastest-growing region.